Cooperative movement gets a shot in the arm

NEW DELHI, NOV 15
The Government on Monday tabled legislation in the Lok Sabha to strengthen the cooperative movement in the country, making the multi-state institutions self-reliant, professional and democratic.
It also seeks to bring transparency in the cooperative societies by requiring appointment of information officer and making a provision for appeal.
The Multi-State Cooperative Societies (Amendment) Bill piloted by Parliamentary Affairs Minister Pawan Kumar Bansal on behalf of Sharad Pawar, hospitalised in Mumbai, also empowers the central registrar to declare any cooperative as “sick” and set up an interim board for its revival and rehabilitation.
The interim board shall be for maximum five years, but may be dissolved earlier if the registrar finds the cooperative becoming viable. A cooperative society will be deemed sick if its accumulated losses are equal to or exceed total of its paid up capital, free reserve and surpluses and also suffered cash losses.
The Centre seeks to set up a Cooperative Rehabilitation and Recommendation Fund for helping out the “sick” cooperatives and all multi-state cooperative societies are required to credit 0.005% to 0.1% of its turnover, subject to a maximum of Rs 3 crore a year, as may be prescribed.
The statement of objects and reasons attached to the Bill says it will make the management of the cooperative societies more responsible to members. The Bill lays down accounting standards, special audit, constitution of audit and ethics committee and strengthened provisions relating to election of the board members.